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A Quick Scan of Peatlands in Malaysia

Malaysia, comprising the regions of Peninsular Malaysia, Sabah, and Sarawak, supports some of the most extensive tropical peatlands in the world. Malaysia’s peatlands mainly consist of peat swamp forest, a critically endangered category of forested wetland characterised by deep layers of peat soil and waters so acidic that many of the plants and animals found in them do not occur in the other tropical forests of Asia. The peatlands of Malaysia play a critical role in preserving water supply, regulating and reducing flood damage, providing fish, timber, and other resources for local communities, and regulating the release of greenhouse gases by storing large amounts of carbon within peat. They also support a host of globally threatened and restricted-ranged plants and animals.

Despite these values, the peatlands of Malaysia are the most highly threatened of all its forests and wetlands. Vast areas of peat swamp forest have been cleared, burnt, and drained for economic development and few of Malaysia’s peatlands remain intact. Remaining peatlands continue to be cleared, particularly for oil palm plantations, to meet domestic and international demand for palm oil and other agricultural products. While this demand is increasing, international consumers are also implementing more stringent requirements for forest-certified and ‘green’ products. This is creating new demands on Malaysia to meet its national and international commitments toward climate change protocols and biodiversity conservation while still achieving its economic targets. Yet the development of management strategies is hindered because little data is available on the extent and status of Malaysia’s peatlands, and no national strategy for peatland management exists.

This report presents the first national assessment of peatlands in Malaysia. It identifies remaining peatlands of high conservation value, and presents preliminary recommendations toward the development of a national strategy for Malaysia’s peatlands. The report comes at a critical time for the management of Malaysia’s forests and wetlands, and is a first step toward developing a national strategy for Malaysia’s peatlands. The report’s findings were presented at the first international ‘Roundtable for Sustainable Palm Oil Conference’, held in Malaysia in November 2009. Importantly, the report is preliminary in nature: data is limited or unavailable for many areas, and available data ranges from two to nine years old. In this respect the report highlights the need for new data and provides a framework for more detailed studies in the future.

A Quick Scan of Peatlands in Malaysia

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A QUICK SCAN OF PEATLANDS IN MALAYSIA Wetlands International – Malaysia March 2010Project funded by the Kleine Natuur Initiatief Projecten, Royal Netherlands Embassy

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A QUICK SCAN OF PEATLANDS IN MALAYSIA Wetlands International - Malaysia March 2010Project funded by the Kleine Natuur Initiatief Projecten, Royal Netherlands Embassy

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PREFACEMalaysia, comprising the regions of Peninsular Malaysia, Sabah, and Sarawak, supports some of themost extensive tropical peatlands in the world. Malaysia’s peatlands mainly consist of peat swampforest, a critically endangered category of forested wetland characterised by deep layers of peat soiland waters so acidic that many of the plants and animals found in them do not occur in the othertropical forests of Asia. The peatlands of Malaysia play a critical role in preserving water supply,regulating and reducing flood damage, providing fish, timber, and other resources for localcommunities, and regulating the release of greenhouse gases by storing large amounts of carbonwithin peat. They also support a host of globally threatened and restricted-ranged plants and animals.Despite these values, the peatlands of Malaysia are the most highly threatened of all its forests andwetlands. Vast areas of peat swamp forest have been cleared, burnt, and drained for economicdevelopment and few of Malaysia’s peatlands remain intact. Remaining peatlands continue to becleared, particularly for oil palm plantations, to meet domestic and international demand for palm oiland other agricultural products. While this demand is increasing, international consumers are alsoimplementing more stringent requirements for forest-certified and ‘green’ products. This is creatingnew demands on Malaysia to meet its national and international commitments toward climate changeprotocols and biodiversity conservation while still achieving its economic targets. Yet thedevelopment of management strategies is hindered because little data is available on the extent andstatus of Malaysia’s peatlands, and no national strategy for peatland management exists.This report presents the first national assessment of peatlands in Malaysia. It identifies remainingpeatlands of high conservation value, and presents preliminary recommendations toward thedevelopment of a national strategy for Malaysia’s peatlands. The report comes at a critical time for themanagement of Malaysia’s forests and wetlands, and is a first step toward developing a nationalstrategy for Malaysia’s peatlands. The report’s findings were presented at the first international‘Roundtable for Sustainable Palm Oil Conference’, held in Malaysia in November 2009. Importantly,the report is preliminary in nature: data is limited or unavailable for many areas, and available dataranges from two to nine years old. In this respect the report highlights the need for new data andprovides a framework for more detailed studies in the future.Many individuals and agencies assisted in the preparation of this report, and we thank them all. Theproject was funded by the Kleine Natuur Initiatief Projekten (KNIP) through the Royal NetherlandsEmbassy, without which this project would not have been possible. We hope the report willstrengthen the management and sustainable use of peatlands in Malaysia.Alvin LopezDirectorWetlands International–Malaysia i

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LIST OF TABLESTable 1: Major characteristics of the peat swamp forest communities found on peat domes in Sarawak. 11Table 2: Potential benefits provided by intact peatlands. ........................................................................ 12Table 3: The area (ha) of peat soil in Peninsula Malaysia, Sarawak and Sabah ....................................... 22Table 4: Status of peat soil areas in Malaysia......................................................................................... 23Table 5: Area of oil palm plantations on: (1) all soil types in Malaysia, 2000-2007; (2) on peatlands in2003 and 2008. .................................................................................................................................... 24Table 6: Extent of peat swamp forest (PSF) by State in Peninsular Malaysia.......................................... 26Table 7: The area (ha) of peat swamp forest of more than 70% canopy cover in the different states ofPeninsular Malaysia.. ............................................................................................................................ 27Table 8: Extent of peatlands under oil palm plantation by State, Peninsular Malaysia. ........................... 29Table 9: Peat soil depths of converted peatlands in West Johor. ............................................................. 31Table 10: Area of oil palm plantations on peatlands in Johor. ................................................................ 32Table 11: Estimates of the peatland area in Sarawak .............................................................................. 42Table 12: The area (ha) of peat soils in Sarawak by Division, divided into shallow and deep peat .......... 43Table 13: Status of peat swamp forest (PSF) by Division in Sarawak. .................................................... 44Table 14: The total area (ha) of peat soil in Sarawak and the area developed for agriculture according tothe estimates of Melling et al (1999) ..................................................................................................... 44Table 15: The area (ha) of peat soil in Sarawak used for different crops (Ambak & Melling 1999) ........ 45Table 16: Development projects proposed / implemented in peatlands in Sarawak by 2000. .................. 46 3

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LIST OF FIGURESFigure 1: Cross-section of a highly-developed peat dome in the Baram Valley, Sarawak, showing thedepth and age of the peat.. ....................................................................................................................... 7Figure 2: Diagrammatic representation of a more highly developed inland peat dome, showing theextensive flat bog plain in the centre. The bog plain may be 10 m higher than the river level. The mineralsoil base may be below mean sea level. ................................................................................................... 8Figure 3: Hills and ridges of mineral soil breaking through the peat surface in Naman Forest Reserve inSarawak.. ................................................................................................................................................ 9Figure 4: Cross-section of a peat dome close to Marudi showing how the base mineral soil is below meansea level. . ............................................................................................................................................... 9Figure 5: Variation in the water table in an intact peat swamp forest in Pahang State, PeninsularMalaysia.. ............................................................................................................................................. 10Figure 6: The consequences of peatland drainage. ................................................................................. 13Figure 7: Figure showing that large amounts of carbon can be stored both in the peat and the livingbiomass in intact peatlands. They also accumulate carbon.. ................................................................... 14Figure 8: When peatlands are degraded, not only is the huge carbon store lost, but also the ability tosequester carbon.................................................................................................................................... 14Figure 9: Peat subsidence at the eastern edge of South East Pahang Peat Swamp forest at the transitionfrom undisturbed forest to degraded peatland. ....................................................................................... 15Figure 10: Peat soil areas in Peninsular Malaysia visited during the current study. ................................. 20Figure 11: The Bakong / Baram peat dome to the west of Marudi (indicated by the star). ..................... 20Figure 12: Location of the Kinabatangan peatlands, Sabah. ................................................................... 21Figure 13: Major peat soil areas in Peninsular Malaysia. ....................................................................... 25Figure 14: The area (ha) of peatlands in Peninsular Malaysia by State ................................................... 26Figure 15: Area of peat swamp forest with >70% canopy cover by State, Peninsular Malaysia. ............. 27Figure 16: Percentage of peat swamp forest (PSF) with >70% canopy cover as a percentage of total peatsoil area in each state. ........................................................................................................................... 28Figure 17: Total peat area (ha) in Peninsular Malaysia under agriculture by State .................................. 28 4

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Figure 41: Location of field visit in Miri Division. Blue areas represent peatland. .................................. 56Figure 42: The Bakong/Baram dome holds some of the last undisturbed peat swamp forest communitiesin Sarawak ............................................................................................................................................ 57Figure 43: Areas visited at Bakong/Baram Dome in August 2008. ......................................................... 58Figure 44: Keruntum logs cut from the top of the peat dome being transported to Bakong River.. .......... 58Figure 45: Intact Padang Keruntum (phasic community 6) on the top of the peat dome.. ........................ 59Figure 46: Looking south-east from the track: most of the dome has been drained and planted with oilpalm. .................................................................................................................................................... 59Figure 47: Looking south on the constructed road. Remaining Keruntum trees on the west side withcleared land on the east stretching towards the Baram River. ................................................................. 60Figure 48: Ayer Hitam Forest Reserve, Johor, a fragment of High Conservation Value peat swamp forest.............................................................................................................................................................. 65 6

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1. INTRODUCTION TO PEATLANDS IN MALAYSIAThis report presents the results of a ‘quickscan’, or rapid assessment, by Wetlands International-MalaysiaProgramme (WI-MP) to assess the current status, extent, distribution, and conservation needs forpeatlands in Malaysia. The assessment was conducted from 2007-2009, and comprised desktop reviewand mapping followed up by rapid field visits to selected sites.1.1 OverviewTropical lowland peatlands cover about 23 million hectares in South-east Asia, of which the naturalvegetation is predominantly peat swamp forest. A major characteristic of peat swamp forests is that theyare permanently waterlogged; leading to reduced decomposition of organic matter from plant litter, whichthen accumulates as peat.1.1.1 Development and structureMost of the lowland peatlands in Malaysia have developed along the coast, behind accreting mangrovecoastlines, where sulphides in mangrove mud and water restrict bacterial activity, leading to theaccumulation of organic matter as peat. Many peatlands which are now far inland developed along theformer coastline such that some may be around 100 km inland such as the peat areas around Marudi inSarawak. The age of the oldest inland peat areas has been estimated as 4,000-5,000 years. The peatlandsformed along the coast do not form an unbroken area, rather, they develop as individual units on thealluvial plains between rivers flowing to the sea.A typical situation is that a peat dome develops between two rivers. The rivers possess natural levees intheir floodplain stage, and as the levees fall away from the river, a thin strip of alluvium is left which hasbeen deposited by the river flooding. On these mineral soils, freshwater swamp forest develops. Floodingalong the margins of the rivers, which progressively diminishes as one gets further away from the river,prevents the development of peat. This separates ‘topogenous’ peats, which receive inputs of nutrientsfrom river water, from ‘ombrogenous’ peats or bogs, which receive input of water only in the form ofrainfall. The result is a dome-shaped area of peat between the two rivers. In relatively young domes, thereis a very limited central bog plain, but in older ones, the bog plain is extensive. Figure 1 and Figure 2depict a cross-section of a peat dome in Miri Division, Sarawak and a diagrammatic representation of ahighly developed dome with an extensive central bog plain. Anderson (1964) likened the shape of thesemore developed, older domes to that of an inverted saucer.Figure 1: Cross-section of a highly-developed peat dome in the Baram Valley, Sarawak, showing thedepth and age of the peat. Source: Hazebroek and Abang Kashim (2000); modified from Tie and Esterle(1991). 7

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Figure 2: Diagrammatic representation of a more highly developed inland peat dome, showing theextensive flat bog plain in the centre. The bog plain may be 10 m higher than the river level. The mineralsoil base may be below mean sea level.Peat domes are considered as discrete hydrological units, although they will also be influenced by thedischarge and level of the rivers that surround them. Inundation by freshwater will only occur at themargins of the swamp where it borders the river or the freshwater swamp forest zone. Thus, the higherparts will only receive water in the form of rainfall. Dreissen (1977) notes there is a decrease in the levelsof inorganic nutrients from the margin to the centre of the peat domes, with the centre particularly lackingin phosphorus and potassium.On the bog plain, where the water table is lowest, drought stress may occur during drought periods.Combined with this, the plants may also reduce water uptake due to the high levels of tannins and otherplant chemical defences leached from the litter into the soil water (Bruenig 1990).It appears that most of the peatland areas around the coasts of Malaysia have this domed structure, butthere may be a few which do not possess a domed structure and may be fairly uniform in depth andelevation. Peat depth at the centre of the dome may reach 12 m, such as in the inland domes aroundMarudi in Sarawak (Anderson and Muller 1975).1.1.2 Underlying mineral soilPeat can develop over both sand and clay. In most cases as in Figure 1, the level of the surface of the sub-soil is fairly constant. In some cases, ridges or hillocks may occur in the peat swamps which distort theusual trend in increasing peat depth towards the centre of a peat dome. For example, sand ridges,probably old beach deposits, can form low ridges in the peat swamps. One such example is close to theMerchong River in South East Pahang Peat Swamp Forest (SEPPSF). A profile of a peat in Naman ForestReserve in Sarawak demonstrates this (Figure 3). In these cases, very thin peat soils over sand may bejuxtaposed with areas of deep peat >3 m deep, leading to marked differences in the forest speciescomposition and structure over small areas. 8

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Figure 3: Hills and ridges of mineral soil breaking through the peat surface in Naman Forest Reserve inSarawak. Source: Tie (1990).An important feature is that the mineral soil layer below the peat may be below mean sea level. (Figure 4)shows a cross section of a peat dome on the west side of the Baram River close to Marudi. As can beseen, the mineral soil layer is, at points, 2 m below mean sea level (msl). This has important implicationsfor drainage of peatlands in that, as the land subsides through the oxidation of peat carbon, flooding willbecome more and more prolonged as the level of the land approaches sea level and consequently becomesincreasingly difficult to drain. Figure 4: Cross-section of a peat dome close to Marudi showing how the base mineral soil is below mean sea level. Source: Tie (1990).1.1.3 Water tablePeat is formed under waterlogged conditions and water logging is vital for its continued existence. For themaintenance of the organic soil carbon and/or continued accumulation of peat, the site must bewaterlogged for most of the time. (Figure 5) shows the variation in the depth of the water table inSEPPSF on the east coast of Peninsular Malaysia from September 2002 to August 2004. 9

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Figure 5: Variation in the water table in an intact peat swamp forest in Pahang State, Peninsular Malaysia. Source: Pahang Forestry Department (2005).As a general rule, the water table must be 20-30 cm below the surface of the peat or higher to avoiddrying out and decomposition of the peat, with the subsequent release of carbon dioxide (CO2). As can beseen from Figure 5, the peat swamp was flooded during the wet season at the end of 2002 and 2003, whenflood levels reached almost 50 cm. For most of the period the water table was above 20 cm, apart from adry spell in April 2004, where it dropped below 30 cm.Intact, waterlogged peatlands, such as this one, are net CO2 absorbers – some CO2 would probably havebeen released around April 2004, but for most of the year, the ecosystem would sequester more carbonthan is released. In contrast, drained peatlands are net CO2 emitters, since the water table would, for mostof the time, be well below 20-30 cm.1.1.4 VegetationThe natural vegetation of peatlands in Malaysia is generally peat swamp forest. There are a few peatlandareas with a natural vegetation of sedges, grasses and shrubs, as a result of extended periods ofinundation, especially where peat areas are found around water bodies. There is much variation in thespecies composition of peat swamp forest and this is mainly related to peat depth and hydrology affectingwater table depth and nutrient content. Due to the dome-like structure of most of Malaysia’s peatlands,especially in Sarawak, several distinct peat swamp vegetation communities are found. The different typesof vegetation communities on peat domes have been described in detail by Anderson (1963) for Sarawakand neighbouring Brunei. Relatively little information is available on peat swamp vegetation communitiesin Peninsular Malaysia and Sabah.In Sarawak and Brunei, Anderson described six phasic communities of plants proceeding from the edgeto the centre of the dome. Anderson described these as phasic communities because pollen analysis ofbore samples on a peat dome just west of Marudi (Anderson and Muller 1975) indicated that the changein vegetation up the dome was paralleled by the same sequence of vegetation types with depth of peat i.e.a succession in time. 10

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The major trends in the stature of the forest along the peat dome are thought to be concerned mainly withdecreasing fertility, increased incidence of periods of water stress, and problems with uptake of waterwith very high concentrations of leached plant defensive compounds. A summary of the majorcharacteristics of the different phasic communities is given in Table 1.Table 1: Major characteristics of the peat swamp forest communities found on peat domes in Sarawak. Phasic community Height (m) Trees/ha Canopy and structure of forest > 5 cm dbhMixed peat swamp 40 - 45 150 - 170forest Mixed, uneven. Dense middle and lower storeysAlan (Shorea albida) 40 – 45 (S. albida 150 -170 Mixed, uneven, with prominent emergents. Dense middle /batu forest emergents to 65 m) lower storeysAlan bunga forest 50 - 60 85 - 125 Canopy uneven, sometimes broken by gaps caused by lightning strikes and insect attack; middle storey almost absent, with dense understorey frequently dominated by a single speciesPadang alan forest 35 - 40 450 Canopy even and mostly unbroken, marked pole-like structurePadang Paya 15 - 20 1,000 - Dense, even canopy with few emergents, herbaceous flora 1,250 largely absentPadang keruntum Up to 7 m (mostly Open aspect with only one tree species reaching up to 20 m. (Combretocarpus shrub-like Most other species small in structure or shrub-like. Herbaceous forms) flora consists of Nepenthes, sedges and Sphagnum rotandatus to 20 m)In Sabah, three vegetation communities have been described for peat areas (Fox 1972, cited inwww.sabah.gov.my): Dactylocladus stenostachys / Gonystylus bancanus. The most common peat swamp forest type. Occurs mainly in southwest Sabah, particularly on the Klias Peninsular. The dipterocarps Shorea platycarpa, S. scabrida, and S. teysmanniana and Ramin Gonystylus bancanus are found in this forest type. Dacrydium elatum / Gymnostoma nobile. This rare forest type occurs close to the coast in Marintaman-Mengalong Forest Reserve south of Sipitang. Lophopetalum multinervium. This type of peat swamp is found in the Sugut Valley and Labuk on shallow peat and in areas transitional between peat swamp and freshwater swamp forest. There are also some areas in the Kinabatangan floodplain.Fox (1972) reported that highly developed peat domes and their associated peat swamp forestcommunities such as those found in Brunei and Sarawak, are absent in Sabah. It is notable that thedominant tree species on deeper peats in Sarawak, the dipterocarp Shorea albida, is not found in Sabah(the northern limit of its distribution is Tutong District in Brunei). 11

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In Peninsular Malaysia, no classification of peat swamp vegetation communities has yet been developed.However, it seems that most communities are of the mixed peat swamp forest type, with no distinctcommunities dominated by a single species. Appanah (1999) considered that there are floristic differencesbetween the shallower and sandy peats of the east coast and the deeper peats over clay of the west coast.1.1.5 Benefits provided by intact peatlandsPeat swamp forests provide a wide range of valuable goods and services, yet these are often ignored whenpeat areas are considered for development. An understanding and appreciation of the benefits provided byintact peatlands may be useful for reconsideration of conversion to unsustainable uses. The costs ofconversion may well exceed the benefits of conversion, especially in the long term. Benefits can bedivided into three groups (Table 2). Table 2: Potential benefits provided by intact peatlands. Grouping Benefit Direct uses (goods) Forestry, agriculture, plant gathering, wildlife capture, fish capture, tourism/recreation, water supply Functions (services) Water storage/retention, carbon storage/sequestration, flood mitigation, maintenance of base flow in rivers, sediment, nutrient, and toxicant removal Attributes Biological diversity, cultural/spiritual value, historical value, aesthetic valuePeat swamp forests are significant carbon stores and sinks. They are one of the few ecosystems which, intheir natural state, accumulate carbon. If peatlands are maintained in their natural state, CO2 issequestered as organic carbon in dead organic matter stored in the peat, moderating greenhouse gasemissions. When disturbed either by drainage and burning or both, carbon accumulated over centuries ormillennia is rapidly released to the atmosphere contributing to the greenhouse effect and climate change.Peat swamp forests are a source of valuable timber species, chief amongst which is Ramin Gonystylusbancanus. Other important timber species are Dactylocladus stenostachys, Dryobalanops rappa, and theMeranti group, especially Shorea platycarpa, S. albida and S. uliginosa.Socio-economic importance is high, with hunting, fishing, small-scale logging and collection on non-timber forest products all being important.Whilst peat swamp forest is less species rich then mixed dipterocarp forest in terms of tree species, manyof the vegetation communities are globally significant for biodiversity conservation. Most significant arethe communities found on peat domes in Sarawak. Peat swamp also contains rare and endemic treespecies such as Shorea albida, which historically formed unique, mono-specific stands over wide areas inSarawak. Although tree species such as S. albida and Dryobalanops rappa are not confined to peatswamp forest, they are endemic to north-west Borneo and mainly occur in peat swamp forest. 12

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In terms of faunal diversity, peat swamp forests are vitally important since they are often the last intactforests remaining in the lowlands. They harbour at least 60 species of vertebrate fauna listed as globallythreatened, such as the Orang-utan Pongo pygmaeus, Proboscis Monkey Nasalis larvatus and SumatranRhinoceros (UNDP 2006). Peat swamp forests also harbour a number of species that are confined to thishabitat, such as the endangered False Gharial Tomistoma schlegelii (Bezuijen et al. 2001). The blackwaters of the peat swamp forests are known to have some of the highest freshwater fish biodiversity in theworld. It is likely that many new species of plants and animals will be discovered in peat swamp forests inview of the relatively small number of biodiversity surveys that have been conducted compared to othertypes of forest in Malaysia.Peat swamp forests also play important functional roles in regulation of water resources. Intact peat areas,i.e. those which have not been drained and generally have a canopy cover of more than 70%, act as hugewater storage reservoirs. Whilst their ability to absorb large volumes of floodwaters is limited since thewater table is normally high in intact peatlands, they can release the stored water gradually, therebymaintaining base flows in rivers during dry periods and preventing saline water intrusion. They canprovide a supply of drinking water and water for industrial purposes year-round.Such functions as flood control, flow regulation, water supply and prevention of saline water intrusion arecrucial to maintain the integrity of downstream ecosystems and to prevent economic losses to agricultureand industry.1.1.6 Consequences of drainageThe ‘knock-on’ effects which occur when peatland is drained are shown in Figure 6. Figure 6: The consequences of peatland drainage.Most concern for the drainage of peatlands is centred on the increased susceptibility to fire, leading toincreased CO2 emissions. Peat fires are the major source of the ‘haze’ that blankets parts of South-eastAsia during dry spells, with serious implications for the health of citizens and for the economy. 13

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The role of peatlands as carbon stores and sinks and the consequences of their disturbance are shown inFigure 7 and Figure 8.The Indonesian peat forest fires during 1997–1998 covered 1.8–2.2 million ha and released between3,000 and 9,400 Megatonnes (Mt) of CO2 (Page et al. 2002), equivalent to 13–40 % of mean annualglobal CO2 emissions. This enormous release of CO2 resulted in the largest annual increase inatmospheric CO2 concentrations since records began in 1957. Figure 7: Figure showing that large amounts of carbon can be stored both in the peat and the living biomass in intact peatlands. They also accumulate carbon. Source: Wetlands International. Figure 8: When peatlands are degraded, not only is the huge carbon store lost, but also the ability to sequester carbon. Source: Wetlands International. 14

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Whilst fire has a dramatic and rapid effect in releasing CO2 to the atmosphere, drainage of peatlandwithout fire also results in a continuous and substantial release of CO2 to the atmosphere, albeit at aslower rate. The current total peatland CO2 emissions from drainage in South-east Asia are estimated atan average of 635 Mt per year (over 90% originating from Indonesia). Estimations of annual average firerelated emissions vary between 500 Mt (Van der Werf et al. 2008) to 1,400 Mt (Hooijer et al. 2006).Together the drainage and fire related emissions from degraded peatlands in South-east Asia contributearound 8% of the global emissions from fossil fuel burning (Hooijer et al. 2006).This significant source of Greenhouse Gas (GHG) emissions is not being addressed effectively at presentsince the Kyoto Protocol deals exclusively with GHG emissions from fossil fuel burning and not fromland degradation sources.Subsidence following oxidation and compaction can lead to serious and regular flooding in areas whichhave been drained. This is occurring in West Johor, where peatlands were drained for oil palmdevelopment over 30 years ago. The level of the land has fallen in relation to sea and river levels, suchthat flooding is commonplace and may persist for an appreciable length of time. Moreover, continuedsubsidence causes damage to roads, drainage structures and pylons such that maintenance costs are veryhigh. Figure 9 shows subsidence measured in degraded peatland to the east of the Virgin Jungle Reservein Pekan Forest Reserve. The degraded land has subsided up to 2 m (Pahang Forestry Department 2005). Figure 9: Peat subsidence at the eastern edge of South East Pahang Peat Swamp forest at the transition from undisturbed forest to degraded peatland. Source: Pahang Forestry Department (2005).In many areas, the goods and services that intact peat swamp forests provide make a compellingeconomic case for keeping them intact. However, the true value of the services that intact peat areasprovide are generally not taken into account, thus there is a continued pressure and increasing practice toconvert ‘these unproductive areas’ into other land uses such as oil palm plantations.A large amount of peatland in Malaysia has already been drained for agriculture, mostly for large scale oilpalm plantations, and there is great concern that the projected increased demand for oil palm (including asbiofuel) will trigger further reclamation and subsequent drainage and degradation of intact peatland areas.Hooijer et al. (2006) estimate that the production of one tonne of palm oil on fully-drained peatland canresult in CO2 emissions of 10-30 tonnes due to peat oxidation. Thus, the demand for biofuel, the aim ofwhich is to reduce CO2 emissions, may actually cause substantially increased CO2 emissions if plantationsare established on peatland areas (Silvius 2007). 15

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Currently there are three main driving forces that are behind the conversion of these ecologically sensitiveforests: The opening up of more land for agro-industries, in anticipation of an increased global demand for palm oil as biofuel, is a serious threat. Of particular concern is the expansion of oil palm plantations into High Conservation Value (HCV) peat swamp forests. The conversion of these ecosystems into built up areas for housing and townships to meet the increasing demands of a rapidly growing human population. Continuing pressure to log these economically valuable forests.1.1.7 Characteristics of peat soil in MalaysiaPeat soils are organic soils, defined as containing more than 65% organic matter. Peats in South-east Asiaoften contain more than 90% organic matter. They are acidic with pH levels as low as 3.5. They generallyhave a low nutrient content, except when flooded by rivers, with a high Carbon/Nitrogen ratio. Theconcentration of substances such as phenols and aluminium are sometimes high and may cause toxicity inplants. Water, air, mineral content and organic carbon content are the four main components of peatwhich are inter-linked and dependent on each other.Water is a vital component but the volume of water varies – when fully saturated, peatlands may becomposed of more than 90% water by volume.Irreversible drying of peat is one of the characteristics of peat soil and may occur after prolonged andintensive periods of drying. Peatlands that are drained for land use changes but abandoned for prolongedperiods will exhibit this phenomenon. It may cause severe drought stress in shallow rooting crops. Thismay be due to the hydrophobic nature of dried peat due to the presence of resinous coating whichpresumably forms upon drying (Coulter 1957). Such properties of resistance in re-absorption of watercould also be attributed to adsorbed air films and iron coating around the peat material.Bulk density of peat material depends on the amount of compaction, the botanical composition of thematerials, the degree of decomposition and the mineral and moisture content (Andriesse 1988). 16

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1.2 Study objectivesIn order to effectively underpin any advocacy work on the conservation of HCV peat swamp forests andsustainable management of degraded peatlands, a ‘quickscan’ of the status of peatlands in Malaysia wasurgently needed. The specific objectives of this study were as follows.1. Determine the extent and status of peatlands in Malaysia.2. Recommend policy changes to achieve more effective conservation of peatlands.3. Identify strategic actions required to develop a long-term peatland programme for Malaysia, with the aims of achieving sustainable use and rehabilitation of peatlands, minimising CO2 emissions, and halting the conversion (logging, burning, drainage) of HCV peat swamp forests.4. Disseminate the findings of this study to national and international stakeholders. 17

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2. METHODSThis study was conducted between 2007 and 2009, and comprised desktop review and mapping followedby rapid field visits to selected sites.2.1 Definitions used in the current study‘Peatlands’ and ‘peat soil’.For the current study, ‘peatlands’ were defined as all lands on peat soil. The definition of ‘peat soil’follows the USDA Soil Taxonomy as: ‘organic soil where the loss on ignition is greater than 65%. Theminimum depth of the organic soil must be 50 cm and the organic soil material must make up more thanhalf the total cumulative thickness of the upper 100 cm of the soil profile’ (Paramananthan and Omar2008; see Appendix 1).Management categories.Five categories were defined to identify the area and distribution of peatlands.(1) ‘Undisturbed/relatively undisturbed HCV forest’. No drainage undertaken in forest area (althoughthere may be drainage in peripheral areas of peat), canopy cover >70%, and forest either unlogged or,logged selectively without drainage.(2) ‘Moderately disturbed peatland’. Peatland which has normally been drained and selectively logged.Canopy cover 30–70%, few fire events, canopy cover may be from residual trees left after the disturbanceor from natural succession.(3) ‘Severely degraded peatland’. Peatland which has been drained and clear-felled, with frequent fireevents. Vegetation mostly herbaceous (grasses/sedges/ferns) with scattered trees/shrubs, canopy cover<30%.(4) ‘Peatland under crops/husbandry’. Any peatland areas now used for agriculture, including oil palmplantations, pineapple, sago, and annual vegetable crops.(5) ‘Peatland used for infrastructure’. Peatland areas which have been effectively ‘lost’ throughdevelopment of the built environment e.g. residential and industrial development on peat areas.2.2 Determining the extent of peat soils in MalaysiaPeninsular Malaysia. To estimate the extent of peat soils in Peninsular Malaysia, a map was prepared byoverlaying 2009 satellite imagery (Landsat Thematic Mapper, scale 1:50,000) on a 2002 map of land useprovided by Department of Agriculture (DOA 2004). Mapping was conducted using ArcInfo GIS. Thisenabled calculation of the extent and distribution of peat soils, and current land uses on peat, in each state.To assess the accuracy of this map, existing data on peatlands from other Wetlands International reportswere reviewed, and ground-truthing was undertaken in sites throughout the peninsular to assess the localextent and condition of peat soils (see below). In general, site visits confirmed the accuracy of land/soil 18

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classifications in the 2002 map of DOA, with one principle exception, the Sedili basins in Johor State.DOA (2004) classify these basins as peat soil, but various WI-MP surveys from 2003–2007 show thatmost of the swamp areas surrounding Sedili Besar and Sedili Kecil Rivers were mineral soil with onlysmall pockets of peat. Thus the area of peat soil for Peninsular Malaysia shown in the current report islower than the figure arrived at by analysis of the DOA soil maps alone.The Department of Agriculture in Peninsular Malaysia follows the USDA Soil Taxonomy in defining‘peat soil’ as soils which have loss on ignition of more than 65%. DOA also classifies peat soils in threecategories based on depth: shallow peat (<150 cm), moderately deep peat (150–300 cm), and deep peat(>300 cm).Sabah. Data for Sabah were obtained from DOA Sabah, which provided information on the extent anddistribution of wetland soils. For this report, the area of the Klias soil association was used (Acres et al.1975). These are peat soils, which may, in places, be intermixed with alluvium, but in which the peat soilpredominates in the soil profile.Sarawak. Current information on the extent and distribution of peat soil could not be obtained forSarawak. Data was gathered from a variety of published reports and peat experts in Sarawak.For the area of peat soil, the estimate from the Agriculture Capability Maps produced in 1986 is adopted(Tie, pers. comm.), contained in the reference Maas, Tie & Lim (1986). Information on the area and statusof peat swamp forest was taken from Wong (2003), a forestry study which analyzed data from the year2000. Wong’s (2003) estimate of the total area of peatland in Sarawak in much lower than otherestimates. It is assumed that she under-estimated the area of peatland which has been converted, but thatthe estimate of peat swamp forest was accurate. (These data were collected under the project ‘SustainableManagement of Peat Swamp Forest with special reference to Ramin’ under the umbrella of theMalaysia/Netherlands Joint Working Group on Sustainable Forest Management (Van der Meer et al.2005; Wong 2003).The estimate of the area of peat soils converted to agriculture is taken from Melling et al (1999). A majorcomplication is that there has been some modification of Districts and Divisons in Sarawak such thatsome changes in peatland areas through time for certain Divisions may be a reflection of re-allocation ofDistricts (and also creation of new Divisions). There is little information available at present on thesechanges. This is clearly a priority for follow-up work,2.3 Site visitsRapid field visits were made to selected sites in Peninsular Malaysia, Sabah, and Sarawak, to assess theaccuracy of desktop mapping and available information (see Section 2.2). Sites were visited for whichthere was a lack of recent data and/or which were under high threat from development. For each site, thestatus of the peat swamp forest was assessed, together with areas of peat soil that had been converted toother uses. Survey results are incorporated in the current study, including a case study of theBakong/Baram peat dome near Marudi (Section 3.5). Survey sites in Peninsular Malaysia are shown inFigure 10, the position of the Bakong/Baram dome in Sarawak is in, and survey sites in Sabah (theKinabatangan peatlands) are in Figure 12. 19

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Figure 10: Peat soil areas in Peninsular Malaysia visited during thecurrent study. Red areas are peat soil. The yellow square shows theSedili Besar and Kecil valleys, which were excised from the totalpeat area for Peninsular Malaysia, since these valleys are mostly withmineral soils. Figure 11: The Bakong / Baram peat dome to the west of Marudi (indicated by the star). The yellow line represents the border between Sarawak and Brunei. 20

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Figure 12: Location of the Kinabatangan peatlands, Sabah.2.4 Limitations1. Previous studies of peatlands in Malaysia have used different or interchangeable definitions of ‘peatland’ or ‘peat soil’, rendering comparisons with the current study difficult. In some reports, it is unclear whether area estimates are for peat swamp forest, peatlands, or peat soils.2. No recent data could be obtained from the relevant government agencies for the present extent and distribution of peat soil areas in Sarawak. Three sources were used, Maas et al (1986) for the extent of the peat soil area; Wong (2003) for the status of the remaining areas of peat swamp forest; and Melling et al (1999) for the area of peatland converted to agriculture. Moreover, creation of new Divisions and re-allocation of Districts to different Divisions renders some of the estimates for Divisions confusing.3. For Peninsular Malaysia, DOA (2004) land use maps do not classify peat swamp forest according to canopy cover, but classify them as ‘swamp’ or ‘forest’. To address this in the current study, other sources of information were used to estimate the areas of the different categories of canopy cover (<30%, 30–70% and >70%). This information could be obtained for North Selangor and South East Pahang peat swamp forests, but no additional information could be obtained for Terengganu State; for this state, it is likely the area of peat swamp forest with more than 70% canopy cover has been over- estimated. 21

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3. RESULTS3.1 OverviewThis sub-section summarises the key findings of the current study. Extent and distribution of peat soilareas for Malaysia under different land uses is summarised in Table 3.1. National overview.Peat soils encompass 2,457,730 ha (7.45%) of Malaysia’s total land area (32,975,800 ha).Sarawak supports the largest area of peat soils in Malaysia: 1,697,847 ha (69.08 % of the total peatlandarea in Malaysia), followed by Peninsular Malaysia (642,918 ha; 26.16%); then Sabah (116,965 ha; 4.76%) (Table 3).Table 3: The area (ha) of peat soil in Peninsula Malaysia, Sarawak and Sabah REGION ha % SARAWAK 1,697,847 69.08 PENINSULAR MALAYSIA 642,918 26.16 SABAH 116,965 4.76 TOTAL 2,457,7302. Extent of undisturbed/relatively undisturbed peatlands. Only 20% of peat soil areas in Malaysia are still under forest with a canopy cover of >70%.3. No example of a hydrologically intact peat dome remains anywhere in Malaysia. Given that peat swamp forest ecosystems are dependent on maintenance of the intricate balance between hydrology, vegetation and soil, this renders peat swamp forest the most threatened ecosystem in Malaysia.4. Peninsular Malaysia and Sarawak have a relatively similar area of undisturbed/relatively undisturbed peatlands, but Peninsular Malaysia has the greatest proportion of its peat soil area still under peat swamp forest with more than 70% canopy cover (35% compared to 13% in Sarawak) (Table 4). 22

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Table 4: Status of peat soil areas in Malaysia. Values in parentheses are the proportion (%) of total peatsoil area. See Methods for definitions of categories for intactness and land use.Regions Total Undisturbed/ Moderately Severely Total Peat Peat soils Peat soils peat soil relatively disturbed disturbed mod + soils under under area (ha) undisturbed (ha) (ha) severely under waterbodies agriculture (ha) disturbed infra- /aquaculture (ha) (ha) structure (ha) (ha)Peninsular 642,857 226,026 (35) 66,353 47,686 114,039 15,512 5,628 (1) 281,652Malaysia (18) (2) (44) Sabah 116,965 21,000 (18) 27,757 11,985 39,742 17,767 0 38,457 (33) (34) (15)Sarawak1 1,697,847 223,277 (13) 488,357 426,926 915,283 nd nd 554,7752 (71) (12) Total 2,457,730 470,303 (19) 582,528 486,597 1,069,125 33,633 6,042 874,884 (44) (1) (36) 1 Data for peat swamp forest from the year 2000 (Wong 2003). The total for moderately and severely disturbed peatland comprise Wong’s classes of medium and low density peat swamp forest together with the cleared and burnt classes in her analysis. 2 Data on area of agriculture on peat in Sarawak from Melling et al (1999)5. For Sarawak, the figure of 223,277 ha (Table 4) of peat swamp forest with more than 70% canopy includes only ~18,000 ha of completely undisturbed peat swamp forest (Wong 2003): this is barely 1.8% of the total area of remaining peat swamp forest in Sarawak (1,054,844 ha). During the current study, site visits to Marudi in Miri Division revealed that peat swamp forest was being cleared on a peat dome north-west of Marudi for new oil palm plantations. The clearance included some of the last remaining vegetation communities of deep (~12 m) peat on top of the dome. This confirmed that the extent of remaining intact peat swamp forest in Sarawak is now substantially less than 18,000 ha. If this trend continues, there will be little or no remaining intact peat swamp forest in Sarawak in the near future.6. For Sabah, only 18% of its peat soil area remains under peat swamp forest with >70% canopy cover. Extensive logging, burning, and drainage of peat swamp forest has occurred in most peat soil areas e.g. at Binsuluk Forest Reserve.7. Extent of peat soils under agriculture including oil palm. For Malaysia, about 36% of peat soil areas are used for agriculture. Peninsular Malaysia has the highest proportion of its peat soil under agriculture (44%).Sabah and Sarawak have similar proportion of peat soils under agriculture (33%).8. Oil palm plantations on all soil types have expanded greatly in Malaysia as a whole, from 642,000 ha in 1975 to just over 4.3 million ha in 2007, and most expansion has occurred in Peninsular Malaysia and Sabah (see Table 5 and references therein). In 2008, at least 510,000 ha of peatlands in Malaysia supported oil palm plantations. According to figures by TPRI (2009) (Table 5), there appears to have been no expansion of oil palm in peatlands in Peninsular Malaysia and Sabah between 2003 and 2008. For at least Peninsular Malaysia, these figures are inaccurate and under- 23

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represent the extent of new oil palm development on peatlands. For example, the area of oil palm on peat in 2008 in Peninsular Malaysia (200,000 ha) differs with a figure of 222,957 ha for 2006 by DOA. Table 5: Area of oil palm plantations on: (1) all soil types in Malaysia, 2000-2007 (source: MPOB 2008); (2) on peatlands in 2003 and 2008 (source: modified from TPRI 2009). Year Peninsular Sabah (ha) Sarawak Total - Malaysia Malaysia (ha) (ha) (ha) Area of oil palm on all soil types in Malaysia (from MPOB 2008) 2000 2,045,500 1,000,777 330,387 3,376,664 2001 2,096,856 1,027,328 374,828 3,499,012 2002 2,187,010 1,068,973 414,260 3,670,243 2003 2,202,166 1,135,100 464,774 3,802,040 2004 2,201,606 1,165,412 508,309 3,875,327 2005 2,298,608 1,209,368 543,398 4,051,374 2006 2,334,247 1,239,497 591,471 4,165,215 2007 2,362,057 1,278,244 664,612 4,304,913 Area of oil palm on peatlands in Malaysia (from TPRI 2009) 2003 200,000 10,000 100,000 310,000 2008 200,000* 10,000 300,000 510,000*In contrast, DOA estimate that in 2006, 222,957 ha oil palm occurred on peatland in Peninsular Malaysia9. The greatest expansion of oil palm plantations on peat soils has been in Sarawak, from 100,000 ha in 2003 to 300,000 ha in 2008 (Table 5), and large further expansions into peat soil areas are anticipated, due to the relatively limited availability of more suitable hilly lands. Additional details on oil palm development are provided in Sections 3.2.2, 3.3.1, and 3.4.1. In this respect, some figures for the area of peatland converted to oil palm in Sarawak seem anomalous. As can be seen from Table 5, the figure from TPRI (2009) is 100,000 ha for oil palm plantations for Sarawak in 2003. However, the estimate from Melling et al (1999) is 330,669 ha for oil palm on peatland prior to 1999. Moreover, the figure from MPOB (2008) for the year 2000 is 330,387 ha for all soil types in Sarawak. It may be that the figure of Melling et al (1999) refers to small-holder oil palm as well as plantations, although it seems unlikely that the difference between the estimates (over 200,000 ha), is due to small holder oil palm.10. Extent of moderately or severely disturbed peat soil areas. For Malaysia, 44% of remnant peat swamp forests are moderately or severely disturbed, with the highest proportion in Sarawak (54%) (Table 4). Most disturbance has been due to logging. In Peninsular Malaysia, only 18% of peat 24

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swamp forest appears to be moderately or severely disturbed, but it is likely that the extent of intact peat swamp forest in Terengganu State has been over-estimated due to a lack of data on forest quality.3.2 Peninsular Malaysia3.2.1 OverviewPeninsular Malaysia supports the highest area of peatlands under cultivation in Malaysia (44%); about35% of all peatlands still retain peat swamp forest in relatively good condition (Table 6). Major peat soilareas are shown in Figure 13. Figure 13: Major peat soil areas in Peninsular Malaysia.The largest area of good quality peat swamp forest remaining in Peninsular Malaysia is in Pahang State(129,759 ha) followed by Terengganu State (51,759 ha) (Table 6 and Figure 14). It is likely that the extentof intact peat swamp forest in Terengganu State has been over-estimated due to a lack of data on forestquality; further ground-truthing is required to evaluate this figure. 25

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Figure 16: Percentage of peat swamp forest (PSF) with >70% canopy cover as a percentage of total peat soil area in each state.3.2.3 Agriculture on peat areasJohor has the greatest area of peat soil under agriculture (crops/husbandry) followed by Perak andSelangor (Table 4 and Table 6)Despite having a large area of peat soil (164,113 ha), Pahang only has 20,869 ha under agriculture (Table6 and Figure 17). Figure 17: Total peat area (ha) in Peninsular Malaysia under agriculture by State 28

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There are 281,652 ha of peat soils under cultivation in Peninsular Malaysia, of which 203,455 ha or 72%are under oil palm plantations (Table 7). Johor has the greatest extent of oil palm on peat soils (68,468ha), followed by Perak (61,257 ha). One third of all oil palm plantations on peat in Peninsular Malaysiaare found in Johor. By State, Perak has the highest proportion of its peatlands under oil palm (88%),compared to less than half in Johor (47.6%) (Table 8, Figure 18). The most complete data set forPeninsular Malaysia for figures on oil palm on peatlands is from 2002. According to DOA, in 2002 therewas a total of 203,455 ha of oil palm plantations on peat in Peninsular Malaysia, which was 9.3% of totaloil palm area (2,187,010 ha) (Table 8). This figure varies widely by state in Peninsular Malaysia: 33.7%of all oil palm is on peat soils in Selangor, with 19.6% of oil palm being on peat in Perak. In Kelantan, incontrast, only 0.3% of the total oil palm area is on peat. By comparison, available DOA figures for 2006reveal there were 222,057 ha of oil palm on peat in Peninsular Malaysia out of total of 2,334,247 ha on allsoil types (9.5%). Based on these figures, between 2002 and 2006 the area of oil palm on peat inPeninsular Malaysia increased from 203,455 ha to 222,057 ha (18,602 ha), from 9.3 to 9.5%.Table 8: Extent of peatlands under oil palm plantation by State, Peninsular Malaysia.*Source: DOA (2002). % oil palm on peat soil Area of peat Peat soil Peat soil Total area compared >65% organic under under oil % peat soil area of oil palm to oil palm State / soil at 50 cm agriculture palm used for oil palm in on all soils on all soil Division depth (ha) (ha) (ha)* each State (ha) (ha) types (ha)Johor 143,974 114,887 68,468 47.6 664,059 10.3Kedah No data 66,124 No dataPahang 164,113 20,869 20,175 12.3 584,482 3.5Penang 13,725 0Selangor 164,708 59,587 46,456 28.2 137,770 34Perak 69,597 62,954 61,257 88.0 313,080 20Perlis 5 0Malacca No data 45,278 No dataTerengganu 84,693 16,628 6,925 8.2 156,198 4Kelantan 9,146 2,464 174 1.9 75,784 0.3NegeriSembilan 6,245 4,262 No data No data 130,505 No dataTotal 642,857 281,652 203,455 2,187,010 29

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Figure 18: Extent (ha) and proportion (%) of oil palm on peatlands by State, Peninsular Malaysia.3.2.4 Profile: State of SelangorSelangor State encompasses 800,000 ha. The eastern part of the state is bordered by the Main TitiwangsaRange. The land gradually descends into low hills and floodplains to the west. The coastal regions areformed of marine alluvium. Peat formation in Selangor occurred in the river basins of Selangor River inthe north and Langat River in the south. In the early 1950s, about 121,276 ha of total peat swamp forestarea in Selangor were in pristine condition. Since then, large areas have been cleared for agriculture: in1982, the area of undisturbed peat swamp forest was 94,400 ha and in 1986 it was 78,161 ha. Figure 19: Major peatlands in Selangor.Kuala Langat (KL) river basin catchment extended 2,350 km2 covering a large area of South Selangor.Likewise in the north the Selangor River’s extensive floodplains extended 1,960 km2 (110 km long)(Abdul Jalil Hasan 2006), comprising numerous tributaries of Kerling, Kubu, Buloh, Rening, BatangKali, and Sembah Rivers. With the conversion of extensive peatland areas in the last few decades, large 30

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areas have been left abandoned and degraded. Forest fires pose a major threat to these areas. Between1995 and 2001, 750 ha of peatlands were destroyed by fire, including 500 ha in 1998. Some areas havesuffered frequent fires and are dominated by herbaceous vegetation with little tree regeneration.3.2.5 Profile: State of JohorJohor has the largest area of coastal estuarine ecosystems in Peninsular Malaysia with varied wetlandstypes, such as coral reefs, sea grass beds, mangrove swamp forest, riparian fringes, and peat swampforest. Peat soils in Johor have developed on marine soils, acid sulphate soils, and marine clays. TheJohor west coast peat overlies acid sulphate soil and the east coast peat overlies sand and clay. During thesite analysis, the Sedili Besar and Kecil basins were excised from the total peat extent for PeninsularMalaysia since the predominant soil type in Sedili is of alluvium covered with freshwater swamp forest(WI-MP 2005). Figure 20: Peat Soil Areas in Johor State.Conversion of peat swamp forest in Johor began in early 1974, when 95,000 ha of West Johor peatlandswere converted for agricultural purposes (depth of converted peats is in Table 9). According to a GECsurvey carried out in 1997 (23 years since the first phase of conversion), a subsidence rate of 1.2 m wasrecorded in the district of Pontian.Table 9: Peat soil depths of converted peatlands in West Johor.Peat depth (m) Phase 1 Phase 2 Total %Shallow peat < 1.5 3,520 12,181 15,701 17Moderately deep peat 1.5 to 3.0 14,184 5,863 20,047 21Deep peat > 3.0 45,127 13,681 58,808 62Total 62,831 31,725 94,556 31

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Oil palm plantations comprise a large proportion of the total area of peatlands in Johor utilised foragriculture (Table 10).Table 10: Area of oil palm plantations on peatlands in Johor. Peat soil total Total area of crops / Area of oilRegion area (ha) husbandry (ha) palm (ha)South-West Johor 75,236 70,627 53,240West Johor 53,764 41,705 13,100East Johor (Mersing) 9,171 972 941South-East Johor 5,803 1,583 1,187Total 143,974 114,887 68,468Along the west coast of Johor, the presence of acid sulphate subsoils may pose a serious problem tocultivated areas of peatland. With the loss of peat soil, the acid sulphate subsoils may eventually surface,unless the mineral soil lies below maximum drainage depth, in which case a lake would form. Crop yieldson acid sulphate soils are generally low. In addition the environment will deteriorate to a level that localcommunities may have to abandon the area (Van den Eelaart 2003). Acid sulphate soils release largequantities of acidic water to adjoining canals, especially during the rainy seasons (Van den Eelaart 2003),which cannot be used for domestic purposes, will cause severe corrosion of metal structures, andmortality of fish. Only few species of fish may survive under these conditions. 32

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3.2.6 Profile: State of PahangPahang has a total of 197,768 ha of peatlands, comprising Pahang River North Peatland, and the Pekan,Nenasi, Kedondong, and Resak Forest Reserves, including several small peatland areas west of Pahang(Figure 21). Pekan Forest Reserve is the largest block with an area of 59,097 ha. Nenasi Forest Reservehas an area of 20,546 ha, between Bebar and Merchong Rivers. Resak and Kedondong Forest Reservesare smaller blocks of 9,681 ha and 1,818 ha respectively. Except for 14,949 ha in Pekan Forest Reserve(formerly logged state forest; recently reinstated as a Permanent Forest Reserve) and part of Nenasi ForestReserve (clear-felled, apparently for oil palm development) the reserves are in good condition. A 200 hablock near the eastern margin of Pekan Forest Reserve is gazetted as Virgin Jungle Reserve (VJR). Figure 21: Peatlands in Pahang.3.2.7 Profile: State of TerengganuThe coastal areas of Terengganu comprise a series of raised beaches interspersed with swales. Foresttypes include mangrove, Melaleuca, peat swamp, and freshwater swamp forests, along the banks ofCaluk, Bari and Setiu Rivers (Figure 22).Figure 22These forests were once important habitats for large fauna (e.g. Tiger) and many bird and reptilespecies; most have been severely degraded by logging and remnant forests are highly fragmented andrapidly being developed. 33

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Figure 22: Major peatlands in Terengganu.In the Merang peatland (Figure 23), extensive clearance of high quality peat swamp forest has occurredsince 2007 followed by planting of oil palm. In April 2008, during the site visit, logging was observedwest of the area cleared for oil palm, and logs were being floated out by drainage canals (Figure 24). Figure 23: Merang peatland, Terengganu. Peat soil area is enclosed by the red line. The area cleared for oil palm can be clearly seen in the north. 34

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Figure 24: North-west area of Merang peatland, showing the eastern side of the new oil palm plantation and the logging of peat swamp forest to the west.3.2.8 Profile: State of PerakPerak originally had an area of 70,418 ha of peat swamp forest, located mainly along the coastal areas ofthe state (Figure 25). These peat swamp forests contributed to flood mitigation and helped regulate stormdamage. Scientific and student-based research has been conducted for many years at Beriah peat swampforest, located at the northern border of the State. This peat swamp forest supplies water for the nearbyKeriah rice fields. The world’s ‘second smallest fish’, the ‘Perak fish’, was discovered at Beriah. Figure 25: Major peatlands in Perak. 35

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3.2.9 Profile: State of KelantanPeat swamp forest in Kelantan covers approximately 9,146 ha (Table 6, Figure 26). Clearing andconversion of peat swamp forests began in the 1970s when paddy was extensively grown as the mainfood crop. Several incidences of forest fire occurred between 1998 and 2000 which destroyed ~605 ha ofpeatlands. Melaleuca trees (known locally as Gelam) grow extensively in these burnt and degraded areas.The state currently supports ~5,626 ha (61%) of relatively undisturbed HCV peat swamp forests.Remnant peatlands in Kelantan comprise three principle blocks: Berangan peatland (1,392 ha), PasirPuteh peatland (6,433 ha), and Pasir Mas peatland (1,311 ha). Little published information is available onthe biodiversity of Kelantan’s peat swamp forests. Figure 26: Major peatlands in Kelantan.3.2.10 Profile: State of Negeri SembilanThere are five small blocks of peatland areas around the coastal region of Negeri Sembilan and a sixthblock further inland close to the north-east Johor State boundary (Figure 27). These cover a total area of6,245 ha. Sixty-eight percent (68%) of peatlands support agriculture, including oil palm, rubber, mixedhorticulture and diversified crops. About 1,729 ha comprise HCV peat swamp forests. 36

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Figure 27: Major peatland areas in Negeri Sembilan.3.2.11 Profile: Federal TerritoryApproximately 380 ha of the Kuala Langat North Peatlands is located within the Federal Territory(Putrajaya) (Figure 28), including ~44 ha of relatively undisturbed HCV peat swamp forest. Theremaining portion of this peatland within the Federal Territory includes ~21% severely degraded peatlandand ~24% under infrastructure, within the new townships of Cyberjaya and Putrajaya. 37

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Figure 28: Peatlands in the Federal Territory3.3 Sabah3.3.1 OverviewSabah has a land area of 7,361,900 ha with a coastline of 1,440 km. Most of its low-lying coastal regionshave well established human settlements. Inland regions are largely mountainous, with lower humandensities. Sabah supports high biodiversity values, including 167 mammal species (from a total of 197species for Borneo) and 526 bird species (of which 395 species are residents, 35 are endemic to Borneo,and four are endemic to Sabah). In the last 30 years, Sabah’s forest resources have been depleted due to 38

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unsustainable forest management practices, particularly timber logging. Subsequent large scaleconversions of the forests to other land uses, such as oil palm plantations, have resulted in the loss ofextensive areas of natural forest. Large areas of natural forest were destroyed by severe fires in 1981-1982and were subsequently converted for agricultural purposes. These fires destroyed more than one millionhectares of forest in Sabah; subsequent fires in 1992, 1998, and 2005, collectively consumed 16,375 ha offorest, including 12,000 ha of protected peat swamp forest in Binsuluk Forest Reserve. Approximately75% of this reserve was destroyed by fires in 1998 and it seems that now due to subsequent fire events,particularly in 2005, there may be less than 1,000 ha left (Figure 29, Figure 30). Figure 29: Distribution of peat soil areas of Sabah. Figure 30: Areas affected by fires in Sabah in the year 1998 (shown in red). 39

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According to DOA Sabah (unpublished data) there are 116,965 ha of peat soils in Sabah. These soils areunder the ‘Klias association’ in the DOA classification. Available data is generally limited but issufficient to estimate the location and extent of remaining HCV peat swamp forests: there are tworemaining sites which support the largest areas of peat soil in Sabah, on the Klias Peninsula and, in theKinabatangan–Segama Valleys.The Klias Peninsula historically supported 60,500 ha of peat swamp forest (Fox 1972, quoted inUNDP/GEF 2007); in 2003, ~5,500 ha remained (Phua et al. 2008), comprising 3,630 ha in Klias ForestReserve, 1,870 ha in Binsuluk Forest Reserve, and the remainder under degraded grassland after loggingor conversion to agriculture (mainly rice). There are two large areas of intact peat soils in theKinabatangan Valley: the largest is in the recently designated ‘Lower Kinabatangan-Segama Wetlands’Ramsar Site, which includes 17,155 ha of intact peatland forest from a total of 78,803 ha of coastalwetland ecosystems (Ramsar 2008). The other area is in the Kinabatangan Valley between Batu Putehand Bilit immediately north of the river. This covers 5,000 ha, but has been logged, with most timbertrees removed. Much of the area is regenerating but has been badly affected by fire in the west close toBatu Puteh.There is little information on other areas of peat soil, thus a preliminary estimate of the total intact area ofpeat swamp forest in Sabah is probably in the region of 22,655 ha, 19.4 % of the original area. Of the116,965 ha of peat soil, by 2008 ~10,000 ha (8.5%) had been converted to oil palm (TPRI 2009). Thisgives a total of intact forest and oil palm plantations of 27.9 %. The reminder comprises mainly disturbedareas and areas converted to agriculture other than oil palm. For oil palm on peat soils, available data islimited but indicates that: (1) most oil palm plantations are in a broad band in Sandakan and TawauDivisons, on mineral soil in gently undulating country; (2) oil palm on peat (~10,000 ha) represents only0.8% of the total area of oil palm development (1,278,244 ha) on all soil types in Sabah (MPOB 2009);(3) there has been no major conversion of large areas of peat soils in the Klias Peninsula, although someconversion has occurred around Bukau River east of the Klias Forest Reserve. Rapid assessments of allmajor areas of peat soils in Sabah are required to assess and update these figures.Summary information for the largest peatland areas in Sabah is given below.3.3.2 Profile: Klias PeninsulaThe Klias peninsula historically included 60,500 ha of peat swamp forest, 14,500 ha of freshwater swampforest, 8,700 ha of mangrove swamp, and 28,000 ha of transitional coastal swamp. There are five forestreserves located in this wetland region, of which the largest are Padas Damit freshwater swamp (9,027 ha)(an important waterbird area) and Binsuluk Forest Reserve (12,106 ha) (originally peat swamp forest butmuch was lost in fires in 1998 and 2005, with <1,000 ha intact forest remaining). In 1978 a total of30,900 ha of Klias was gazetted as a Forest Reserve but in 1980 it was degazetted. Today the Klias ForestReserve consists of only 3,630 ha peat swamp forest.3.3.3 Profile: Kinabatangan Wildlife SanctuaryThere is an extensive area of peat (Klias Series) of ~14,000 ha on the north bank of the KinabatanganRiver between Batu Puteh and Bilit, including parts of Pin Supu Forest Reserve, which covers 4,696 ha.Most of the peat swamp forest appears to have been logged in the 1960s but was not drained. The forest isregenerating, but with open areas of grasses, sedges and ferns. Forest canopy cover is 30-70%. Alstoniaspp. are the only large remaining trees, indicating at least part of this site historically supported mixedpeat swamp forest on shallow peats. This site lies within Kinabatangan Wildlife Sanctuary, which was 40

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gazetted on 16 November 1999 and supports 27,000 ha of floodplain forests under the jurisdiction of theSabah Wildlife Department.The Kinabatangan Wildlife Sanctuary consists of 10 separate blocks, many of which are separated by oilpalm plantations and other cleared areas. The ‘Corridor for Life’ has been proposed to join these blocksalong the Kinabatangan River. Figure 31 shows that the peat area is an important part of this corridor,connecting the Pin Supu and Gemantong Forest Reserves. The lower Kinabatangan peat swamp forestsare of global importance for biodiversity and support populations of threatened fauna, including Storm’sStork Ciconia stormi, Estuarine Crocodile Crocodylus porosus, and Proboscis Monkey Nasalis larvatus.Some of these forests have been entirely converted to oil palm plantations, forcing some fauna to migratethrough plantations.3.3.4 Profile: Lower Kinabatangan-Segama Ramsar WetlandsFigure 31: Location of the new Ramsar site, Lower Kinabatangan-Segama Wetlands (from Ramsar 2008)The Lower Kinabatangan-Segama Wetlands is the largest Ramsar site in Malaysia (78,803 ha) and wasgazetted in October 2008. It encompasses the lower floodplains of the Segama and Kinabatangan Riversand comprises three reserves: Kulamba Wildlife Reserve, Trusan Kinabatangan Forest Reserve, and KulaMaruap/Kuala Segama Forest Reserve, of mangrove and peat swamp forest. The peat swamp componentcovers 17,155 ha. 41

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3.4 Sarawak3.4.1 OverviewSarawak has a total land area of 12,398,500 ha and encompasses most of the western portion of Borneo.No recent information on peatlands of Sarawak could be obtained for the current study (despite variousrequests for data from various agencies), hence access to primary sources of information was limited:Estimates of the area of peatland in Sarawak in the literature vary substantially. Table 11 below gives themost common estimates in total and by division.Table 11: Estimates of the peatland area in SarawakDIVISION PEATLAND PEATLAND PEAT SWAMP PEAT SOIL AREA AREA (ha) AREA (ha) AREA (ha) (ha) Melling et al Mutalib et al Wong (2003) Tie (pers. comm.): (1999) (1991) reference: Maas et al (1986)SIBU / MUKAH 502,466 540, 800 386,402 600,387SRI AMAN / 340,374 283, 076 237,536 340,374BETONGMIRI 314,585 276, 579 240,233 295,995SAMARAHAN 205,479 192, 775 168,170 165,581SARIKEI 172,353 169, 900 158,194 74,414BINTULU 168,733 146,121 78,016 157,422LIMBANG 34,730 25, 300 17,183 34,730KUCHING 26,827 23, 059 3,380 26,827KAPIT 0 0 0 2,097TOTAL 1,765,457 1,657, 600 1,289,114 1,697,847Some of the differences may arise from changes in the boundaries of Divisions and creation of newdivisions. For example, Sri Aman Division has been split into Sri Aman and Betong Divisions; and Sibuinto Sibu and the new Mukah Division. In addition, one district in Sarikei Division has been re-allocatedto the new Mukah Division (Tie pers. comm.). This would create differences between the estimates ofareas for divisions before and after the boundary changes.The estimate produced from the Agriculture Capability Maps of 1986 is adopted here (Tie pers. comm.),with a total of 1,967,847 ha of peat soil in Sarawak.By far the lowest estimate is that of Wong (2003) at 1,289,114 ha, with the highest being that contained inMelling et al (1999) at 1,756,457 ha. This is a difference of almost half a million hectares (476,343 ha).The only primary literature source that could be obtained to examine the methodology used in derivingthese estimates was that of Wong (2003). 42